- Grab leads Southeast Asia’s food delivery with a 55% market share.
- Competitors Foodpanda and Gojek declined amid Grab’s 6.8% growth.
- Consolidation continues as uncertainties spur cost-cutting despite 5% overall order value rise.
A recent report by Momentum Works highlights Grab’s dominant position in Southeast Asia’s food delivery landscape, capturing an impressive 55% of the food delivery gross merchandise value (GMV) in 2023.
The ride-hailing giant’s substantial growth, with a 6.8% year-on-year increase in GMV, stands in stark contrast to its competitors, as Foodpanda and Gojek experienced declines of 12.9% and 10% year-on-year, respectively.
Potential for expansion
The report underscores Grab’s potential for further expansion, considering it currently serves only 5% of the region’s 600 million population as monthly transacting customers. The overall food delivery expenditure in Southeast Asia exceeded US$17.1 billion, marking a 5% year-on-year growth.
Vietnam led the growth with a notable 28% increase in GMV, followed by Malaysia, Thailand, and Indonesia, while Singapore’s growth remained stable.
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Uncertainties resulted in cost-cutting
Despite F&B spending surpassing pre-pandemic levels, the report notes that premium brands, facing macro uncertainties, resorted to cost-cutting measures and shutdowns.
Amid this evolving landscape, consolidation remains a common strategy, with companies like Delivery Hero exiting Vietnam and seeking to sell Foodpanda in Southeast Asia, while Chinese F&B brands, such as Luckin Coffee and Cotti Coffee, are eyeing the region for additional growth prospects.
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Factors affecting growth
According to Jianggan Li, CEO and founder of Momentum Works, the region’s robust F&B consumption, low food delivery penetration, and ongoing consolidation create ample room for growth in the food delivery platform sector.